ECB's Schnabel urges caution and emphasizes data-driven policy

  • ECB chief: Incoming data broadly confirmed underlying expectations.
  • Schnabel, President of the European Central Bank: Trust does not mean knowledge. History will judge not our intentions but our success in fulfilling our commitments.
  • ECB President Schnabel: The closer interest rates get to the upper band of the neutral interest rate estimate, the more careful we have to be to avoid policy itself becoming a slowdown factor.
  • Schnabel, ECB President: The pace of monetary policy easing cannot be mechanical. It must be data-driven and analytical.
  • Schnabel, ECB Governor: Wage transmission may be stronger than expected.
  • Schnabel, ECB Governor: It is conceivable that the conditions on which the model forecasts are based may not materialize.
  • Schnabel, ECB: In the alternative scenario, growth in unit labor costs would not fall as quickly as expected.

This article was written by Arno V Venter on www.forexlive.com.

cautionDataDrivenECB039semphasizesPolicySchnabelurges